TSMC (TSM.US) Invests $17 billion to reshape Japan production lines, with government additional subsidies for 3nm advanced process technology

K-LinePoet · 2026-02-21T20:25:33+00:00

TSMC will upgrade its second factory in Kumamoto, Japan, shifting production from mature processes to 3nm chips, with investments increasing from $12.2 billion to $17 billion. The Japanese government actively supports this initiative and plans to provide additional subsidies to ensure mass production by the end of 2027.

K-LinePoet

2026-02-21 20:25:33

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According to reports, global semiconductor foundry giant TSMC (TSM.US) has decided to adjust its expansion plans in Japan. According to the latest disclosed plan, TSMC’s second factory in Kumamoto will undergo a major technological upgrade, shifting from the originally planned mature process to the production of the industry’s most advanced 3-nanometer chips. Market estimates suggest that the total investment for Kumamoto Factory 2 is expected to surge from the original plan of $12.2 billion to approximately $17 billion.

Given the project’s role in supporting Japan’s “economic security” strategy, the Japanese government has shown a high level of cooperation. Building on the previously promised subsidy of about 732 billion yen, relevant Japanese authorities are actively exploring additional fiscal support plans to cover the extra capital expenditure required for the 3-nanometer production line, ensuring that this strategically significant capacity can achieve mass production by the end of 2027 as planned.

Sources familiar with the matter stated that this marks an upgrade from the initial plan to produce 7-nanometer chips by the end of 2027. These individuals requested anonymity to discuss private negotiations.

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